Stonewall Industries Limited

1458 WordsJun 1, 20156 Pages
Assignment 2 Nicole Lee 038236154 HRM822 Peter MacKellar May 11, 2015 1. In 1982 it seems the company will have to downsize. What are the factors that are forcing the company to make that decision? (10 marks) Downsizing is a strategy to improve an organization’s efficiency by reducing the workforce or changing and restructuring the systems of the organization (Belcourt & McBey, p. 260). There are multiple factors that are forcing Stonewall Industries to make the ultimate decision to downsize. Environmental factors play a vital role in effective Human Resources Management, impacting the strategy of any organization, including the decision to downsize. If Human Resource Planning is not adaptive to relevant environmental…show more content…
The property that this plant is situated on is also of high value to real estate developers in the area and in this time of recession it may ideal for Stonewall to take advantage of this by the closure of this operation and gaining value for this property. Stonewall can consider expanding the Calgary plant in the future, and provide product for the Vancouver market without needing a plant situated in Vancouver – similar to how the Montreal plant produces wallboard for Quebec and the Maritimes, or how the Winnipeg manages the Manitoba and Saskatchewan market. If downsizing was inevitable, for effective human resource planning, downsizing this operation would be the most economically sound decision in the long run. 4. Explain, in detail, the implications of the downsize decision. (10 marks) When considering downsizing, one of the most vital questions to consider is whether downsizing will improve organizational efficiency, productivity, and performance. If so, Stonewall must then consider what practices of downsizing to implement – workforce reduction, work redesign, or systematic change (Belcourt & McBey, p. 263). If reducing the size of the workforce, things to consider are whether cuts will be either targeted or across the board, and whether the cuts will be carried out all at once or staged over a period of time. Although, downsizing strives to improve
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